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Iran
Iran
Exchange rate: US$1.00 equals 8,229 rials.
Old Age, Disability, and Survivors
Regulatory Framework
First law:
1953.
Current laws:
1975 (social security) and 1986 (self-employed
insurance), implemented in 1987.
Type of program:
Social insurance system.
Coverage
All employed persons between ages 18 and 65 residing in the
country.
Self-employed persons may contribute voluntarily.
Special systems for government employees and the armed
forces.
Source of Funds
Insured person:
7% of earnings.
Self-employed person:
Voluntary contributions of 12% of
earnings for old-age; 14% for old-age and disability; or 18% for
old-age, disability, and survivors.
Employer:
20% of payroll, plus 3% of payroll for
unemployment insurance. (Contributions for the first five
employees in small industrial and technical workshops are
exempted.)
Government:
3% of payroll. Also pays the employers’
contribution for the first five employees in small industrial and
technical workshops and, depending on geographical location,
60% to 90% of the employers’ contribution for new staff taken
on by certain employers.
The minimum monthly earnings for contribution and benefit
purposes for salaried employees are 1,060,000 rials.
The maximum monthly earnings for contribution and benefit
purposes for salaried employees are 5,000,000 rials.
All of the above contributions (except for the self-employed)
also finance medical care and cash sickness, maternity, and
work injury benefits.
Qualifying Conditions
Old-age pension:
Age 65 (men) or age 60 (women) with at
least 10 years of contributions; at any age (men and women)
with 30 years of work.
Age 50 (men) or age 45 (women) with between 20 and 25 years
of work in an unhealthy working environment or in a physically
demanding natural environment.
Retirement from insured employment is necessary.
Early pension: Age 60 (men) or age 55 (women) with at least
10 years of contributions.
Deferred pension: A deferred pension is possible with the
agreement of the employer.
The old-age pension is not payable abroad.
Disability pension:
Total disability (2/3 loss of earning
capacity). One year of contributions in the last 10 years,
including 90 days in the year before the onset of disability.
There is no provision for partial disability. The disability
pension is not payable abroad.
Survivor pension:
Payable to a widow or dependent widower,
children younger than age 18 (age 20 if a student or disabled),
an unmarried daughter until she marries or becomes
unemployed, and aged dependent parents (father older than
age 60; mother older than age 55).
The deceased was a pensioner at the time of death or had paid
contributions for between 10 and 20 years; with less than
10 years of contributions, a lump sum equal to one month’s
minimum wage will be paid for each year of service.
The survivor pension is not payable abroad.
Old-Age Benefits
Old-age pension:
1/35th of the insured’s average earnings
during the last 24 months times the number of years of
contributions. For insured persons working in difficult or
hazardous occupations, each year of paid contributions counts
as 1.5 years.
The minimum pension is 50% of the insured’s average earnings
but not less than 1,060,000 rials a month (the minimum wage of
an unskilled laborer), plus food coupons.
Spouse allowance: A married male pensioner receives up to
188,000 rials for his spouse.
The maximum pension is 100% of the insured’s earnings up to
4,500,000 rials a month.
Early pension: 1/35th of the insured’s average earnings during
the last 24 months times the number of years of contributions.
Deferred pension: 1/35th of the insured’s average earnings
during the last 24 months times the number of years of
contributions.
Benefit adjustment: Benefits are adjusted annually according
to wage changes.
Permanent Disability Benefits
Disability pension:
If more than 66% disabled (totally
disabled), the pension is equal to 3.3% of average earnings
during the last 2 years times the number of years of
contributions.
The minimum pension is 50% of the insured’s average earnings
(60% with dependents) but not less than 1,060,000 rials a
month (the minimum wage of an unskilled laborer).
Spouse allowance: A married male pensioner receives up to
188,000 rials a month for his spouse.
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The maximum pension is 100% of the insured’s average
earnings up to 4,500,000 rials a month.
Benefit adjustment: Benefits are adjusted annually according
to wage changes.
Survivor Benefits
Survivor pension:
50% of the deceased’s pension. If there is
more than one legitimate widow, the pension is divided equally
between them.
The minimum widow(er) pension is 20% of the deceased’s
pension.
Orphan’s pension:
25% of the deceased’s pension (50% for a
full orphan) is payable for each orphan younger than age 18;
no limit if a student or disabled.
Parent’s pension:
20% of the deceased’s pension for each
dependent aged parent (a father older than age 60; a mother
older than age 55).
The minimum total survivor pension is 1,060,000 rials a month
(the minimum wage of an unskilled laborer).
The maximum total survivor pension is 100% of the deceased’s
pension. If the total survivor pension exceeds 100% of the
deceased’s pension, the survivor pensions are reduced
proportionately.
Benefit adjustment: Benefits are adjusted annually according
to wage changes.
Funeral grant:
The grant varies according to municipality.
Administrative Organization
Ministry of Welfare and Social Security provides general
supervision.
Managed by a council and a board of directors, the Social
Security Organization administers the program through
provincial branches and local agencies.
Sickness and Maternity
Regulatory Framework
First law:
1949.
Current laws:
1975 (social security) and 1986 (self-employed
insurance), implemented in 1987.
Type of program:
Social insurance system (cash and medical
benefits).
Coverage
Employed persons in urban areas and old age, disability, or
survivor pensioners.
Seasonal workers are covered for medical services during the
working season.
Voluntary coverage for self-employed persons.
Special systems for government employees and the armed
forces.
Source of Funds
Insured person:
See source of funds under Old Age,
Disability, and Survivors, above; seasonal workers contribute
9% of the minimum monthly wage.
Self-employed person:
Voluntary contributions of 18% of
earnings.
Employer:
See source of funds under Old Age, Disability, and
Survivors, above.
Government:
See source of funds under Old Age, Disability,
and Survivors, above.
Qualifying Conditions
Cash sickness and medical benefits:
Currently employed.
There is no minimum qualifying period, except for 60 days of
contributions for prostheses.
Cash maternity benefits:
Sixty days of contributions in the
year before the expected date of childbirth for the first three
children.
Sickness and Maternity Benefits
Sickness benefit:
75% of the insured’s average earnings in
the previous 3 months for a worker with dependents; 66.6% of
the insured’s average earnings for a single worker.
The benefit is reduced to 50% of the insured’s average
earnings if unmarried and hospitalized in a Social Security
Organization hospital; there is no reduction if the insured
person has dependents.
The benefit is payable after a 3-day waiting period (unless
hospitalized) until recovery.
Maternity benefit:
66.6% of the insured woman’s average
earnings in the previous 3 months, payable for up to a
maximum of 4 months, at least half of which should be taken
after the expected date of childbirth.
Workers’ Medical Benefits
Medical benefits
Direct system:
Medical care and medicines are provided
directly to patients through medical facilities belonging to the
Social Security Organization.
Dental grant: 180,000 rials for a half set of dentures or
300,000 rials for a full set.
Other medical expenses are payable according to set tariffs.
Indirect system:
Medical services are provided through public
and private hospitals and clinics, as well as through university
hospitals and contracted-out physicians. The cost of inpatient
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care and outpatient care varies among medical care providers,
as does the degree of cost sharing and the rate of
reimbursement.
Dependents’ Medical Benefits
Same as for the insured person. Coverage is provided for a
wife and for the first three children younger than age 18 (age 20
if a student, disabled, or an unmarried daughter), for a disabled
dependent husband older than age 60, and for aged dependent
parents. Voluntary insurance can be taken from the Social
Security Organization for the fourth and subsequent children.
Administrative Organization
Social Security Organization administers the program.
Medical services are provided directly through 73 hospitals
and 270 medical clinics owned by the Social Security
Organization.
Work Injury
Regulatory Framework
First law:
1936.
Current law:
1975 (social security).
Type of program:
Social insurance system.
Coverage
Employed persons in urban areas.
Exclusions: Employed persons in rural areas.
Source of Funds
Insured person:
See source of funds under Old Age,
Disability, and Survivors, above.
Self-employed person:
Not applicable.
Employer:
See source of funds under Old Age, Disability, and
Survivors, above.
Government:
See source of funds under Old Age, Disability,
and Survivors, above.
Qualifying Conditions
Work injury benefits:
There is no minimum qualifying period.
Temporary Disability Benefits
75% of the insured’s average earnings in the previous
3 months for a worker with dependents; 66.6% for a worker
without dependents.
The benefit is reduced to 50% of the insured’s average
earnings if the insured person is hospitalized.
The benefit is payable from the first day of incapacity until
recovery or certification of permanent disability.
Benefit adjustment: Benefits are adjusted annually according
to wage changes.
Permanent Disability Benefits
Permanent disability pension:
If more than 66% disabled
(total disability), 3.3% of the insured’s average earnings in the
last 720 days times the number of years of contributions.
The minimum pension is 50% of the insured’s average earnings
(60% with dependents) but not less than 1,060,000 rials a
month (the minimum wage of an unskilled laborer).
The maximum pension is 100% of the insured’s earnings but
not more than the wage ceiling (5,000,000 rials a month).
Partial disability: If between 33% and 66% disabled, a
percentage of the full pension in proportion to the assessed
degree of disability.
Benefit adjustment: Benefits are adjusted annually according
to wage changes.
Disability grant:
If between 10% and 33% disabled, a lump
sum equal to 36 times the insured’s disability pension times the
assessed degree of disability.
Workers’ Medical Benefits
Medical care and medicines are provided directly to patients
through medical facilities belonging to the Social Security
Organization. There is no qualifying period for prostheses.
Survivor Benefits
Survivor pension:
50% of the deceased’s pension is payable
to a widow of any age or to a dependent widower. If there is
more than one legitimate widow, the pension is divided equally
between them.
The minimum widow(er) pension is 20% of the insured’s
pension.
Orphan’s pension:
25% of the deceased’s pension (50% for a
full orphan) is payable for each orphan younger than age 18
(age 20 if a student or disabled) and to an unmarried daughter
until she marries or becomes unemployed.
Parent’s pension:
20% of the deceased’s pension for each
dependent aged parent (father older than age 60; mother older
than age 55).
The minimum survivor pension is 1,060,000 rials a month (the
minimum wage of an unskilled laborer).
The maximum total survivor pension is 100% of the deceased’s
pension. If the total survivor pension exceeds 100% of the
deceased’s pension, the survivor pensions are reduced
proportionately.
Benefit adjustment: Benefits are adjusted annually according
to wage changes.
Funeral grant:
The grant varies according to municipality.
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Administrative Organization
Ministry of Welfare and Social Security provides general
supervision.
Social Security Organization administers the program through
branch offices and local agencies.
Unemployment
Regulatory Framework
First law:
1987.
Current law:
1990 (unemployment insurance).
Type of program:
Social insurance system.
Coverage
Employed persons in specified occupations and geographic
areas. Seasonal workers are covered only in the case of
dismissal during their contract.
Exclusions: Self-employed persons, voluntarily insured
persons, retired persons, the totally disabled, and those
covered under construction workers’ insurance.
Source of Funds
Insured person:
None.
Self-employed person:
Not applicable.
Employer:
3% of payroll. (See source of funds under Old
Age, Disability, and Survivors, above.)
Government:
Any deficit.
Qualifying Conditions
Unemployment benefit:
Six months of insurance before the
date of unemployment. Registered at an employment office
and capable of, and available for, work. Unemployment is not
due to leaving voluntarily, misconduct, or the refusal of a
suitable job offer.
Unemployment Benefits
The maximum duration of benefits depends on the length of
coverage and marital status. If a married individual has
between 6 and 24 months of coverage, the benefit is payable
for up to 12 months (6 months if single); for between 25 and
120 months of coverage, up to 18 months (12 months if single);
for between 121 and 180 months, up to 26 months (18 months if
single); for between 181 and 240 months, up to 36 months
(24 months if single); for 241 months and longer, up to
50 months (36 months if single).
The minimum benefit is 55% of the insured’s average earnings,
increased by 10% for each of the first four dependents.
The maximum benefit must not exceed 80% of the insured’s
average earnings.
Insured persons aged 55 or older may receive unemployment
benefit up to the retirement age.
Benefit adjustment: Benefits are adjusted annually according
to wage changes.
Administrative Organization
Ministry of Labor provides general supervision.
Family Allowances
Regulatory Framework
First law:
1953.
Current law:
1975 (social security).
Type of program:
Employment-related system.
Coverage
Employed persons.
Source of Funds
Insured person:
None.
Self-employed person:
Not applicable.
Employer:
Total cost.
Government:
None.
Qualifying Conditions
Family allowances:
The child must be younger than age 18
(no limit if a student or disabled). The parent must have
720 working days of contributions.
Marriage grant:
720 days of contributions in the 5 years
before the date of marriage.
Family Allowance Benefits
Family allowances:
Three times the lowest daily wage of an
unskilled laborer. (The lowest daily wage is based on the
minimum wage of an unskilled laborer (1,060,000 rials a month)
and is adjusted according to region.) The allowance is payable
for each of the first three children.
Benefit adjustment: Benefits are adjusted annually according
to wage changes.
Marriage grant:
One month of the insured’s average wage or
salary. If both spouses are insured, both the husband and wife
will receive the grant.
Administrative Organization
Ministry of Labor enforces the law.
Individual employers pay allowances with wages or salaries.